VI. Assignment of Proceeding

Dian M. Grueneich is the Assigned Commissioner and Sarah R. Thomas is the assigned ALJ in this proceeding.

Findings of Fact

1. All parties have agreed to the Settlement Agreement.

2. The Settlement Agreement pays out a substantial sum to customers charged erroneous MUFs, and makes an additional significant payment to the state General Fund.

3. The Settlement Agreement contains provisions designed to ensure that the conduct alleged in the OII does not recur.

Conclusions of Law

1. The settlement in this proceeding is reasonable in light of the whole record, is consistent with the law, and is in the public interest.

2. Hearings are not necessary.

3. The Settlement Agreement should be approved.

ORDER

IT IS ORDERED that:

1. The Settlement Agreement appended to this decision as Appendix A and signed by all parties is approved.

2. The Settlement Agreement is binding on MCI, WorldCom, and MCI WorldCom (collectively, MCI), and its successors and assigns, including Verizon California Inc.

3. If the Consumer Protection and Safety Division (CPSD) is not satisfied with the efforts undertaken by MCI, CPSD may make appropriate inquiries to obtain satisfactory responses as to whether MCI made reasonable good faith efforts to identify complainants and pay refunds or issue credits. In order to enforce this agreement, CPSD may schedule meetings or propound data requests as necessary. If there is a dispute, CPSD or MCI may file a petition to modify or enforce the decision.

4. The Settlement Agreement shall be enforceable before this Commission.

5. No hearing was necessary for this proceeding.

6. Investigation 05-04-018 is closed.

This order is effective today.

Dated April 13, 2006, at San Francisco, California.

D0604035 Appendix A

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